SUSTAINABILITY

WE CONDUCT OUR BUSINESS WITH

A TRANSPARENT AND ACCOUNTABLE

APPROACH SUSTAINABILITY MANAGEMENT AND STAKEHOLDERS

We conduct our business operations in line with a transparent and accountable management approach, and include internal and external stakeholders in all processes. Sustainability constitutes our core corporate policy in shaping our business strategies and activities. The main pillars of our sustainability policy include: providing employees with a working environment that respects human dignity; ensuring the unconditional happiness of customers; minimizing the environmental footprint of our manufacturing and other operations; putting our signature on eco-friendly practices; having a favorable social and environmental impact on our supply chain; carrying out social development projects in collaboration with NGOs and public agencies; and encouraging voluntary social efforts taken on by our employees. If we detect any deficiency or insufficiency in our social and environmental performance measurements, we take the necessary corrective measures in line with action plans, and conduct our activities with the goal of pursuing continuous improvement. We invite our stakeholders to join our activities on national and international platforms and transfer the best practices we learn to our business lines. We are a member of the UN Global Compact Advisory Group on Supply Chain Sustainability and preside over its working group in Turkey. Seven out of the 17 Turkish companies to have signed the UN Global Compact Women’s Empowerment Principles are under the umbrella of Boyner Holding. Under the coordination of the Corporate Responsibility and Sustainability Department, Group companies carry out a variety of sustainability related activities.

The Group’s sustainability working groups include the following:

• Greenhouse Gas Inventory Quality Team • Clean Production Working Group • Green Office Team • Supply Chain Sustainability Team • Occupational Health and Safety Coordination Team • Working Group on “Touching Employees’ Hearts” The activity areas identified according to the priorities and needs of our companies and stakeholders: Our Environmental Performance

• Energy Efficiency • Water Efficiency • Waste Management • Clean Production Our Social Performance

• Occupational Health and Safety • Human Rights • Non-Discrimination • Anti-Corruption Community

• Community Investments Programs • Corporate Volunteerism • Strategic Philanthropy Product

• Quality • Safe Use of Chemicals • Social Compliance in the Supply Chain • Innovation

In structuring sustainable business strategies and activities, we focus on this area with a comprehensive management

approach that includes all of our internal and external stakeholders.

Our Stakeholders Our Communication Channels

Our Objective

Our Customers

• Sales and CRM teams • Call Center operators • Sales Teams

• We strive to put the Unconditional Customer Happiness principle into action. • We strive to anticipate the needs of customers beforehand and provide them with services that exceed their expectations.

Our Suppliers

• Supply teams • Quality and social compliance audit and monitoring teams

• We strive to create a sustainable supply chain structure.

Our Employees

• Intranet • Boyner Group Managers Communications and Development Group • Boyner Group Volunteers • Trade Union

• We strive to establish a culture of democracy in the Group and ensure employee participation in management and their happiness.

Our Shareholders

• General Assembly • Investor Relations Management • Corporate Governance, Annual and Sustainability Report

• Notification, Transparency

Environment

• Sustainability Working Groups • Boyner Group Volunteers • NGO memberships

• We strive to improve our environmental performance and raise environmental awareness among employees.

Society

• Boyner Group Volunteers • NGO Memberships • Social Responsibility Projects

• We strive to contribute to peoplecentered socio-economic development, the establishment of gender equality, social inclusion of disadvantaged social groups, and protection of the environment. • We strive to contribute to the dialogue and cooperation between the public and private sectors and civil society.

STAKEHOLDERS We are a member of the following NGOs:

• AMPD - Association for Shopping Malls and Retailers, www.ampd.org.tr

• ASKON - Anatolian Lions Association, www.askon.org.tr

• BMD - United Brands Association, www.birlesmismarkalar.org.tr

• ÇERSAD - Association of Çerkezköy Industrialists

• ÇTSO - Çerkezköy Chamber of Industry and Commerce, www.cerkezkoytso.org.tr

• İGSD - Istanbul Association for Garment Manufacturers

• İHKİB - Istanbul Union of Ready-to-Wear and Garment Manufacturers

• İSO - Istanbul Chamber of Industry, www.iso.org.tr

• BCSD Turkey – Business Council for Sustainable Development – Turkey, www.tbcsd.org

• İTHİB - Istanbul Association for Textile and Raw Material Exporters, www.ithib.org.tr

• İTKİB - Istanbul Association for Textile Garments Exporters, www.itkib.org.tr

• İTO - Istanbul Chamber of Commerce, www.ito.org.tr

• KALDER - Quality Association, www.kalder.org

• UN Global Compact, www.globalcompact.org

• NRF - National Retail Federation, www.nrf.com

• ÖSGD - Corporate Volunteers Association, www.osgd.org

• PERYÖN - Turkish Human Resources Management Association, www.peryon.org.tr

• TGSD - Association for Turkish Garment Industrialists, www.tgsd.org.tr

• TOBB - Turkish Union of Chambers and Exchanges, www.tobb.org.tr

• TTTSD - Association for Turkish Textile Finishers, www.tttsd.org.tr

• TÜHİD - Turkish Public Relations Association, www.tuhid.org

• TÜSİAD - Turkish Industry and Business Association, www.tusiad.org.tr

• TÜTSİS - Trade Union of Textile Employers, www.tekstilisveren.org

• TÜYİD - Turkish Association for Investor Relations, www.tuyid.org

• Yeni Bosna Sports Club, www.yenibosnasporkulubu.com

• YENSAV - Yeni Bosna Industrial Zone Environmental Development Foundation IGDS - Intercontinental Group of

Department Stores, www.igds.org

• IADS - International Association of Department Stores, www.iads.org

EXPANDING SUSTAINABILITY IN ALL OUR SCOPE OF INFLUENCE Boyner Group Volunteers (BGG) Our generously awarded corporate volunteer program, Boyner Group Volunteers, is a key component of our socially responsible citizenship approach. Boyner Group Volunteers is an corporate team committed to their jobs as well as to volunteerism and to volunteer work. In 2013, 397 volunteers carried out 1,648.5 hours of voluntary social work. The number of employees who participated in the activities rose from 276 in 2012 to 397 in 2013. Set up in 2002, BGG contributes to society through the projects and activities that they plan annually. The group also plays a key role in encouraging employees to embrace the concept of volunteerism and to become an active participant in resolving social problems. BGG carries out social development projects, activities and campaigns that expand our corporate responsibility and sustainability approach in line with our ethical principles, and continuously widens its area of influence with the participation of our stakeholders.

BGG has created its own database for corporate development efforts and measures the social contribution and impact of every activity the organization undertakes. BGG Activities in 2013 Campaigns: As part of our book campaign, our

volunteers sent 1,500 books and specially written motivation letters to the libraries of four primary schools. We also collected toys for the kindergarten class of a primary school. We collected plastic bottle caps that led to the donation of 11 wheelchairs. We participated in a campaign dubbed “Doggy Says” organized by the Yedikule Animal Shelter, and collected certain categories of waste from our stores and offices as requested by the shelter and delivered these materials to the shelter premises. We also carried out the “Van is Freezing” project together with our employees and customers across Turkey, and sent various winter items to survivors of theVan earthquake living in encampments. During our annual Blood Donation campaign, we not only raised awareness about the issue but we also made blood donations to the Turkish Red Crescent.

Activities: On April 23rd National Children’s Festival,

our volunteers visited children in various health centers and kindergartens such as 70. Yıl Fizik Tedavi Merkezi, Cerrahpaşa Hastanesi Çocuk Servisi, Bahçelievler Çocuk Yuvası, Lösev Antalya, Erciyes Üniversitesi Onkoloji Bölümü, and Gümüşhane Çocuk Yuvası. On Father’s Day, we visited Darülaceze, an institution for the elderly and disabled; and on Mother’s Day, we organized a design workshop for mothers. We played host to a party for hearing disabled youngsters and gave volunteer support to Yedikule Animal Shelter.

Projects: In cooperation with the Association for

Solidarity with Asylum Seekers and Migrants (ASAM), we embarked upon the project “Different Colors, Different Cultures” in 2011. As part of the initiative, we organized events to facilitate the social inclusion of refugee and asylum-seeking children, to support their emotional development, and to enable their integration into society. In the project “Meslek Lisesi Memleket Meselesi” organized by the Private Sector Volunteers Association, our volunteers act as mentors to prepare vocational high school students for their chosen professions. As part of the “Pomegranate Arils” initiative spearheaded by Boyner Holding, our Human Resources executives provided career consultancy to young women.

SUPPLY CHAIN SCOPE OF INFLUENCE

To create a sustainable supply chain, we started to carry out social compliance audits of 45 of our suppliers in 2013, on top of our existing quality controls. Under this initiative, we audit and monitor our suppliers for their performance in industrial rights, protection of human dignity, occupational health and safety, non-discrimination, waste management, safe usage of chemicals, energy and water consumption, good governance, transparency, and accountability. Areas of Audit and Monitoring • Management systems • Work hours • Payments and vested benefits • Non-discrimination policy • Disciplinary procedures • Working conditions of pregnant, nursing and young employees • Child workers and forced labor • Access to health services • Service safety • Fire safety • Building safety • Safe use of chemicals • Safe use of electricity • Waste, energy and water management

• Workplace hygiene • Occupational health and safety In 2014, we plan to increase the number of suppliers audited by 100% and offer training programs to suppliers to encourage them to put sustainability into practice in their workplaces. We translated into Turkish and distributed the publication entitled “Supply Chain Sustainability: A Practical Guide to Continuous Improvement” by the UN Global Compact. We are a member of the UN Global Compact Advisory Group on Supply Chain and preside over its working group in Turkey. Comprehensive Supply Chain In 2013, we embraced the “Comprehensive Supply Chain” work model and took the first relevant action at Boyner Büyük Mağazacılık. As part of this model, meant to bring economically disenfranchised groups into the supply chain, we cooperated with the Foundation for the Support of Women’s Work (KEDV). Their economic enterprise “Nahıl” produced the visuals for our retail shop windows. In 2013, we started to offer seminars on “Supply Chain Sustainability” and “Safe Procurement” to all of our procurement and supply managers.

OUR WORKING ENVIRONMENT Democracy in the Workplace The Boyner Group supports the creation of an open communications environment where all employees can express their ideas and suggestions freely, and encourages all personnel to share their suggestions via the corporate intranet. When disagreements arise in the workplace, managers lend an objective ear to every party involved. Our management philosophy is based on the pillars of transparency, openness, accountability, participation, compliance with legal and regulatory requirements, and responsibility towards society. Principle of Equal Treatment

Boyner Perakende offers employees equal opportunities in recruitment, employment process, remuneration, participation in training, promotion, retirement and all other work related aspects. We deem unacceptable any discrimination based on color, gender, religion, marital status, sexual orientation, political ideology or membership, ethnic identity, health condition, family responsibilities, trade union activity or membership, physical disability or age.

Equal Opportunities

In 2013, we expanded our equal opportunities practices to include our suppliers. The company started to audit its suppliers for various issues such as the percentage and working conditions of women in accordance with applicable legislation. Having signed the UN Global Compact Women’s Empowerment Principles in 2011, we started to report our work in this area from 2012 onwards. In 2014, we will renew our Equal Opportunity Model certification obtained in 2011 from the Women Entrepreneurs’ Association of Turkey and the World Bank. The Women in Leadership Forum recognized our Chairman Cem Boyner with the Male Champion of Change Award in 2013. In addition, Boyner Group was presented with the Great Place to Work Turkey – Special Award for Equal Opportunity and Supporting Women.

Women and Men Equality in the Group

Percentage of women employees 46%

Percentage of women among head office employees 55%

Percentage of women among store employees 67%

Percentage of women among blue-collar employees 43%

Percentage of women managers 38%

Percentage of women participants in training and development programs 47%

Percentage of women in employees promoted in 2013 40%

We periodically monitor the maternity leaves taken by female employees, and make sure that these women continue to work in the same or a similar position upon their return.

Number of women on maternity leave in 2013 157

Number of women on return from maternity leave in 2013 105

We devised a dashboard where we can consolidate data on gender equality and carry out systematic monitoring. We produce reports on SAP to keep track of the following data in three- or six-monthly periods. • Breakdown: Head office/store, manager/others, full-time/flex-time • Seniority • Training and Development • Absence • Resignation, dismissal • Kindergarten services In 2013, we focused our equal opportunity efforts at BBM on the rights of disabled individuals. Our objective was to analyze the needs of disabled citizens in the retail industry, to identify how much our disabled employees benefit from equal opportunity practices in the workplace, and to translate al these analyses into practice. We checked the accessibility level at all of our locations, and eradicated all the problems of access identified at seven stores. We included 38 stores in our 2014 work plan for renewal. We added the topic of “Appropriate Treatment of Disabled Customers” to our orientation program in 2013. Additionally, experts from our stakeholder the Alternatif Yaşam Derneği (Association for Alternative Living) conducted a “Training Program for Trainers” for our in-house training team.

Freedom of Association

Employees fully enjoy all their rights to freely organize. Blue collar personnel working at Altınyıldız Tekstil ve Konfeksiyon A.Ş. are unionized and collective labor agreements are applied at these workplaces. Committee of Ethics

Each Boyner Group company has a Council of Ethics set up to analyze any warning, complaint or denunciation related to violation of Group Values and Working Principles and to make the necessary assessments. The ethical behavior and transparency clearly defined in the Group Values and Working Principles booklet are deemed the responsibility of all employees. Relevant policies and practices were also announced to all managers. In 2013, we were named by ETİKA (EDMER Center for Ethical Values) as one Turkey’s ethical businesses. The Council of Ethics carries out the analysis needed on those issues brought to its attention, and proposes various sanctions including dismissal in the event that violations are found. Issues which cannot be resolved by the concerned company’s Council of Ethics can be settled by the Boyner Perakende Council of Ethics. Anti-Corruption

In the “Business Relations” and “Confidentiality” chapters of the Boyner Holding Work Principles booklet, ethical rules that bind all employees including the Chairman, Board Members and other senior managers are clearly defined. Accordingly, carrying out any business activity that could lead to commercial rivalry with Boyner Holding is considered a conflict of interest. Principle of Confidentiality

All documents and information are deemed confidential if their disclosure can place Boyner Holding at a competitive disadvantage, violate the rights of Group personnel, and compromise the privacy of customers, suppliers and employees. The sharing of such documents and information with third parties, and taking these outside of the Group are considered unethical behavior. Disclosing or sharing with third parties any information such as customer data or financial figures, which could lead to unfair competition or commercially jeopardize our companies, especially publicly traded ones, is unacceptable.

All senior managers including Board Members are also barred from disclosing any company secrets and/or confidential information. Occupational Health and Safety

We consider that work conditions suitable for human dignity are part of our employees’ rights to a safe and healthy life. We make a point of creating workplaces that are healthy, safe, and, last but not least, enjoyable for Group personnel. We encourage and support our employees to invest in their own mental, physical and spiritual development. To this end, we offer the workforce various opportunities in areas such as exercise, healthy nutrition, ergonomics, and employee clubs for leisure activities. In 2013, 5,858 Group personnel participated in occupational health and safety training. In 2014, we plan to take these efforts to a higher level using e-learning programs. Additionally, in 2013, we shared with our employees our “Handbook on Health, Safety and Fun at Work.” Human Resources Practices

In all of our Human Resources policies and practices such as recruitment, promotion, transfer, rotation and remuneration, we embrace an equitable approach and categorically reject all discrimination based on language, race, skin color, gender, political orientation, belief, religion, denomination, age, physical disability and the like. We operate in compliance with all applicable laws, rules and regulations. Our unionized employees are covered by collective labor agreements; thus, the agreement reached between the trade union and Company management applies to all employees regardless of differences. The Human Resources departments of all Group companies conduct development programs specific to their respective business. Two development programs, BIG and BANG, are open to the participation of all Group employees. The objective of the BIG program launched in 2003 is to ensure that every manager benefits equally from the experiences of the Group’s top management, to share the rich know how of the Group, and to identify promising manager candidates. BANG, on the other hand, functions as a platform of training and development that organizes common activities for the entire Group.

Our Compensation Policy At our companies, we implement a fair and egalitarian remuneration system. In this system, characteristics such as age and gender are not taken as criteria. Each position corresponds to a certainpoint value and salaries are managed according to this system. In our stores, the salaries of sales consultants and expert sales consultants are determined according to their occupational position. While recruiting for these positions, everyone is remunerated equally. Individual differences are rewarded with bonuses calculated on the basis of sales performance. Our Fringe Benefits for Employees

In all Group companies, employees are extended fringe benefits covering their meal, transportation and private health insurance expenses; they are also issued Group discount cards. The side benefits enjoyed by unionized personnel are outlined in collective labor agreements Employee Communication The Group regularly provides company-related information to employees and collects their opinions and suggestions via the intranet system, “Boynerişim.” The Boynerişim network offers Group employees up-to-date news and information on job openings in Group companies, the achievements of these companies, campaigns specific to employees, the history of the company, manager profiles, conferences organized by the Group, corporate social responsibility projects and volunteer activities. Boynerişim is not only a news source for employees, but also a platform where personnel can share their creative ideas as well as personal ads. Through the internal stakeholder network, we have achieved our objective of gathering all Group employees around a common platform.

Booklet on Corporate Culture Boyner Group’s various activities, which break from the routine, inspired publication of the corporate culture booklet “Ezberbozanlar Alemine Yolculuk,” translated as “Voyage to the World of Groundbreakers.” The text presents employees the Group’s work principles. Boyner Holding is a passionate, creative, audacious, responsible, great big family which takes inspiration from its customers and never ceases to learn. Hobby Clubs for Employees We organize hobby clubs for our employees as places where they can relax after their busy daytime work, socialize and interact. Open to all Boyner Group employees, the various hobby clubs announce their activities via Boynerişim. Partnerships with Universities The Boyner Group strives to grow by sharing its experiences acquired in the business world. To this end, we have established strong relations with universities, the ideal location for our professionals to share about their work experience. At the conferences and panel discussions where our companies are invited, employees share with students their vocational know how while gaining access to large numbers of young undergraduates. These activities allow us to introduce numerous

university students across Turkey to the basics of the retail industry. In order to take our relationship with universities to a higher level, in 2011-2012, we started offering “Retail Management” classes at Bahçeşehir University in cooperation with the CO-OP career center. We also initiated the “Retail and Store Management” certificate program at Bilgi University. These programs continued throughout 2013. Our partnerships with universities allow Group personnel to share their professional experience with students and set an example for members of the younger generation who are considering a career in the retail industry. As part of our partnerships with universities, vocational colleges and vocational high schools, we offer internship opportunities to young individuals in order to allow them to gain experience in the profession and business line of their choice. Community Investment Program

The Group also joins forces with individuals, institutions and agencies that work for the democratization and development of Turkey, and implements projects to contribute to the betterment of society. We especially cooperate with institutions that place an emphasis on human rights, gender equality, the environment and diversity. In addition to our donations to various NGOs, we also sponsored the Istanbul Biennial and the Sustainable Living Film Festival in 2013.

Pomegranate Arils: Stronger Young Women, Happier Futures The project Pomegranate Arils: Stronger Young Women, Happier Futures was initiated

in 2009 with the cooperation of the Ministry of Family and Social Policy, Boyner Holding and its subsidiaries and with the support of the UNFPA, General Directorate of Child Services, and the Human Management Association of Turkey (PERYÖN). In 2013, we continued the initiative through a collaboration with the Family Health and Planning Foundation of Turkey (TAPV). In 2013, we continued the initiative through a collaboration with the Family Health and Planning Foundation of Turkey (TAPV). The project’s objective is to provide support to young women aged 18-24, who were raised in orphanages and subjected to social and economic exclusion, in order for them to continue their education, bolster their personal development, and to prepare them for the job market by improving their job-seeking skills. As such, a group of mentors provide these young women in need with social and economic guidance, and help them in overcoming problems associated with gender discrimination. From 2009 through 2012, 162 young women from across Turkey completed a two-week educational program and received a year of mentorship support. Some 51% of the young women who participated in the project became employed, 33% continued their education and 16% are active job seekers. In 2013, as part of the Pomegranate Arils: Stronger Young Women, Brighter Futures / Child Empowerment Program, we initiated efforts to support the development of children aged 13-18 and who were raised in the dormitories of the General Directorate of Child Services, in the following areas: • Personal and psychological development, • Socialization and social inclusion,

• Capacity to assume responsibilities, • Continuous education and academic achievement, and • Guidance in the choice of a profession. Under the child development project, our objectives are as follows: • Supporting public employees (such as care personnel, vocational teachers, group and dormitory managers, and directors) through various training programs; • Increasing cooperation among public agencies (national employment agency İŞKUR, and Ministry of National Education); and • Enhancing partnerships with local stakeholders (local government, NGOs, universities). In 2013; we carried out needs analysis studies in seven provinces (Bursa, Samsun, Sivas, Ankara, İzmir, Diyarbakır, Konya) with the participation of staff from 445 institutions; as a result, we organized needsbased training programs in four provinces (Sivas, Bursa, Diyarbakır, Samsun) for 305 directors, care staff, group and dormitory managers and vocational teachers. In 2014, we plan to continue organizing training programs in these provinces and monitor how they affect the children’s development. The ultimate goal of the project is to hand over the model developed by the Pomegranate Arils initiative to the General Directorate of Child Services through training seminars for relevant public employees and new educators, and thus expand it to all children under protection across Turkey.

Environmental Awareness In order to minimize the adverse ecological footprint of our products and services, Group companies develop and implement projects to diminish the consumption of raw and intermediary material, energy and water.

Our environmental awareness includes not only the performance of our companies but also that of our supply chain. To this end, we carry out social compliance audits to track the energy, water and waste management of our suppliers pursuant to applicable laws and regulations. Group company head offices and stores separate their solid waste and work with certified waste

elimination companies. Our manufacturing plant operates within the limits of an organized industrial zone. Plant management collaborates with the municipality to eliminate domestic and waste, while also making use of the organized zone’s water treatment facilities. Additionally, we make use of recyclable bags and packaging at our stores. Our Activities Carbon Footprint

Since 2011, we have regularly calculated the carbon footprint of Altınyıldız Tekstil ve Konfeksiyon A.Ş. (AYTK) in all areas of production and administration. Our goal is to decrease our emissions to combat climate change. In 2011, we received the ISO14064 Scope 3 document upon the approval of BSI.

2012 2013 Reduction 2012-2013

Scope 1 15.009,77 12.301,88 18,04%

Scope 2 28.135,31 3.954,29 85,95%

Scope 3 26.066,58 18.205,36 30,16%

Total CO2-e 69.211,66 34.461,54 50,21%

Our Integrated Power and Heat Plant, which became totally operational in 2013, has helped minimize electric and stream purchases falling under Scope 2. As such, we have eradicated power loss due to the external purchase of electricity and decreased our overall consumption.

AYTK’s Emission Sources and Greenhouse Gas Protocol is based on the ISO 14064-1 Standard. As a result, we have included in our calculations emission sources such as those falling under Scopes 1 and 2 as defined by the Standard, as well as Scope 3. As for emission factors, we have utilized the methodologies and measurements of IPCC. Additionally, we have made use of the emission values of Turkish public agencies, the LCA reports of private companies, measurements demanded by AYTK from external bodies, the coefficients of NGGIP, and values provided by UNFCCC.

Scope 1: Direct Emissions: Emissions directly

released into the atmosphere by our enterprises: natural gas, fuel oil, LPG tanks, air conditioners, fire extinguishers. Scope 2: Indirect Emissions from Electric Energy:

Emissions related to our consumption of purchased electricity and steam from the outside. Since they are generated at the source, we have no control over such emissions. Scope 3: Other Indirect Emissions: Emission

sources and sinks related to the activities of companies whose services we purchase, and over which we have no control. These include recycling processes that function like a carbon sink. We do not have direct access to their precise emission values: domestic and hazardous waste, waste water, raw materials, personnel service buses, taxi fees, logistics activities, domestic and international air travel fees. Clean Production

Altınyıldız Tekstil ve Konfeksiyon A.Ş. carries out its manufacturing operations at its Çerkezköy plant spread across a 83,345 square meter tract. Manufactured products include water-, stain-, shine- and wrinkle-resistant fabrics, as well as Techno-Climatic fabrics. The plant launched the Clean Manufacturing Project in 2011 to reduce the consumption of raw material, energy and water during the manufacturing process, to eliminate hazardous waste in an eco-friendly way, to decrease all emissions and waste, and to decrease the adverse ecological and health impact of our products throughout their life cycle. To this end, and in line with the objective of diminishing water consumption (by recycling condensed water or reusing it in the form of steam, collecting cooling water for use as hot water, switching to the membrane system in potable water and installing valve jackets wherever necessary), we cut consumption by 15.76% over the prior year.

2012 2013 Reduction

Rate

Water Consumption (M3)

914.485 770.345 15,76%

Furthermore, we activated our Integrated Power and Heat Plant and made new investments in machinery and lighting in 2013, which allowed us to reduce our carbon footprint by a considerable margin. Energy Efficiency in Buildings

In 2012, we started to calculate the energy consumption at head offices of Group companies, as per article 7.3.1 of the ISO 14064-1 standard. The scope is limited to the head offices of Group companies and emission sources including those related to energy consumption inside the premises. The study inventory was based on the calculations of IPCC, UNFCC and various national bodies. All emissions related to internal consumption were included in the study. Scope 1: Natural gas usage, HFC leaks via air conditioners, fire extinguishers, LPG tanks. Scope 2: Electricity. Scope 3: Waste water. (Since the waste water generated in office buildings is channeled to the grid, it creates CO2 emissions inside the companies. Such water consumption is tracked by individual companies.) Natural gas, electricity, fire extinguisher filling, LPG tanks and waste water are monitored via utility bills. Meanwhile, HFC leaks via air conditioners are calculated through inventory checks. These data are requested from the relevant departments via data forms, and archived by the Corporate Responsibility and Sustainability Department, which carries out the necessary calculation. The resulting total CO2

emission is divided by total area (m2) in order to arrive at a productivity index.

Company

Total Emission (tons of CO2-e)

Unit Emission (tons of CO2-e/ m2)

Water Consumption (m3)

2012 2013 2012 2013 2012 2013

AYTK 467,09 418,24 0,0778 0,0697 4.533,00 3.753,00

AY Marka 402,93 425,62 0,1215 0,1284 3.309,33 3.953,00

Beymen 285,76 269,22 0,0977 0,0921 1.436,14 1.825,56

BBM* 485,20 775,53 0,0899 0,0834 3.823,00 5.346,00 *2012 figures do not include YKM.

Green Office

In 2012, Boyner Büyük Mağazacılık joined forces with WWF-Turkey to receive Green Office certification. To this end, the company restructured the internal organization of the head office, and replaced the materials with eco-friendly ones meeting Green Office criteria. The eco-friendly reorganization of the interiors required a special focus on changing employee behavior. BBM head office employees set up a “Green Team” in order to fulfill all the Green Office requirements. The 46-strong BBM Green Team worked to prevent excessive consumption of water, paper and electricity inside the building, ensure the correct separation of waste, and raise employee awareness about the issue. The team organized awareness campaigns to ensure that these capital investments are supported by employee actions. During these campaigns, personnel were encouraged to decrease their use of water, paper and electricity. The work was given the in-house brand “Green Touch.” In addition, the visual design team came up with the eye-catching “Activist Pandas” concept that increased the visibility of the campaign across the company. Messages were delivered to employees via seven 3-D panda bears, which encouraged their participation in the Green Office activities. Additionally, a green consumption manifesto was issued.

Electricity Consumption (KwH)

Electricity Consumption per

Square Meter (KwH/ m2)

Boyner + YKM 2012 2013 2012 2013 Change

Electricity Consumption (KwH)

1.135.713 1.256.851 141,96 135,15 -4,80%

Total Area (m2) 8.000 9.300 16,25%

Water Consumption (m3) 6.401 5.346 -16,48%

As a result of the Green Office related activities, our electricity consumption dropped by 4.80% and water consumption fell by 16.48%.

Carbon Disclosure Project

The Carbon Disclosure Project (CDP) was created in 2000 to collect data and create resources in order to help companies, investors and governments in their fight against climate change. BBM’s emission data values for the inventory year 2012 were entered in the CDP system. The operational boundary has been chosen as the BBM building and the calculation was limited to Scope 1 and Scope 2. Scope 1: Diesel Used in Vehicles; Natural Gas Emissions; Diesel Used in Construction Equipment and Generators; Emissions from Air Conditioners; LPG Emissions; Emissions from Coolers and Refrigerators; Emissions from Fire Extinguishers. Scope 2: Electricity-induced Emissions. BBM Emissions in 2012 and 2013

2012* (Tons CO2-e) 2013 (Tons CO2-e)

Scope 1 531,11 843,61

Scope 2 630,97 671,29

TOTAL 1.162,08 1.514,90 * Excludes emissions by YKM.

The emission rise in the year 2013 is related to the increase in total head office area and the acquisition of YKM. Unlike the previous calculations on Energy Efficiency in Buildings, these calculations include emissions whose resources are to be found outside the buildings.